Ask Experts Questions for FREE Help!
Ask    ||    Answer
 
Advanced  
 

Ask QuestionsprogressAnswer QuestionsprogressBuild ReputationprogressBecome an Expert
 
Free Answers in 3 Easy Steps

Register Now
3 Steps

At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to:
  • Get free answers from experts in any of our 300+ topics.
  • Accept money for answers that you provide.
  • Communicate privately with other members (PM).
  • See fewer ads.

Home > Money & Services > Investing   »   Compound interest

 
Thread Tools Search this Thread Display Modes
Question
 
 
#1  
Old May 14, 2007, 11:05 AM
Miladys
New Member
Miladys is offline
 
Join Date: Mar 2007
Posts: 3
Miladys See this member's comment history on his/her Profile page.
Compound interest

Can you please tell me how I can calculate manually.

If 2000.00 is invested at 4% interest a year, compounded yearly .. How many years would it take to accumulate 100,000

Please help
Thanks
Miladys

Reply With Quote
 
     

Answers
 
 
Old May 14, 2007, 02:34 PM   #2  
Ultra Member
ebaines is offline
 
Join Date: Apr 2007
Location: Illinois, US
Posts: 3,763
ebaines See this member's comment history on his/her Profile page.ebaines See this member's comment history on his/her Profile page.ebaines See this member's comment history on his/her Profile page.ebaines See this member's comment history on his/her Profile page.
You want your investment to grow by a factor of 50 (that is 100,000/2000), so what you need to figure out is how many times do you need to multiply 1.04 by itself to reach 50? Stated as a math formula, solve for N where 1.04^N >= 50. Use logarithms and you can solve for N pretty quickly. If you don't know how to use lagarithms, you can estimate the answer using the "rule of 72" - which says that an investment at a rate if return of x% will double in about 72/x years. So here you can see that the investment will aproximately double in 72/4 = 18 years. You need the investment to grow by 50, so how many time does it need to double? Multiply that by 18 and you'll have an estimate of the correct answer.
  Reply With Quote
 
     

Your Answer
Email me when someone replies to my answer
Join Login





Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

 
Similar Sponsors


Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page

Similar Threads
Concrete Curing Compound
(1 replies)
Joint compound weight
(3 replies)
How much floor leveling compound can I use?
(6 replies)
Which thermal compound do I use?
(1 replies)
compound inequalith
(2 replies)

Search this Thread

Advanced Search

Bookmarks

Sponsors



Copyright ©2003 - 2009, Ask Me Help Desk.
All times are GMT -8. The time now is 03:38 PM.